FINANCIAL AWARENESS 1 TO 60

1. CIBIL launches _______ for catering to
non-individuals viz., Corporate, SMEs and other type of business entities.

a) Consumer Bureau b)
Corporate Bureau c) Commercial Bureau

d) Convenience Bureau e)
None of these

2. Interest rates being charged by Banks in India
has shown______ trend in recent year.

a) Falling b)
Rising c) Stable
d) Volatile e)
None of these

3. Which of the following NBFC converted itself
into a commercial Bank?

a) Tata Finance b)
Reliance Capital Trust
c) Birla Mutual

d) Kotak Mahindra e)
None of these

4.Which
finance company has been given banking licence by RBI recently

a) Kotak Mahindra b)
Ashok Leyland & Finance
c) TVS Finance

d) Tata Finance e)
None of these

5.Commercial
Papers :

a) are sold by the banks for short term
purposes

b) are like coupon bonds which carry fixed
interest

c) can develop a secondary market

d) None of the above e)
All of the above

6.Presently,
participants in the call market :

a) include some NBFIs b)
borrow and lend at fixed rates

c) also include primary dealers d)
None of the above e) All of the above

7.CPs
:

a) were launched in the Indian money market
before CDs.

b) are issued by scheduled commercial banks.

c) can be bought by banks as well.

d) None of the above e)
All of the above

8.CDs
:

a) cannot be transacted in the secondary market

b) can be issued only by scheduled banks c)
are subjected to CRR and SLR

d) None of the above e)
All of the above

9. CDs :

a) have a lock-in period b)
have a minimum issue size of Rs.5 lakhs

c) are mainly issued by corporate companies d)
None of the above

e) All of the above

10.In recent years
:

a) the 364-day bill has been the most
popular

b) the 182-day bill has been the most popular

c) the 91-day bill has been the most
popular d) None of the above

e) All of the above

11.Year-end
implicit yield :

a) of all TBs are very similar b)
of TBs very greatly across different maturity

c) of TBs do not have much difference d)
None of the above

e) All of the above

12. The RBI repo market :

a) will not exist if there are no CRR or SLR obligations
of banks.

b) is complementary to the inter-bank call
market.

c) transacts various types of securities other
than government securities

d) None of the above e)
All of the above

13. The LAF Repo market always has :

a) the Repo rate higher than the R-Repo rate

b) the R-Repo rate higher than the Repo rate

c) both are equal d)
None of the above e) All of the above

14.Which among the
following was set up by RBI in 1988 jointly with public sector banks and all
India Financial Institutions to develop the money market & provide
liquidity to money market instruments as sequel to Vaghul Working Group
recommendations?

a) Discount and Finance House of India Ltd
(DFHI)

b) Central Depository Services (India) Limited
(CDSL)

c) Financial Intelligence Unit India (FIU-IND)

d) None of these e)
All of these

15.Which among the
following correctly defines Hundi?

a) They are slips on paper presented to the
customer while purchasing goods

b) They are accounts of unorganized sector in
India

c) They are key instruments of credit in the
unorganized money market in India

d) None of these e)
All of these

16.Recently we came
to know that Treasury Bills which are short term (up to one year) borrowing
instruments of the Government of India are also being issued frequently under
the Market Stabilization Scheme (MSS). They are available for minimum amount of
……?

a) Rs.25000 b)
Rs.40000 c) Rs.50000
d) None of these

e) All of the these

17.Which among the
following helps RBI to manage liquidity conditions in the economy with banks
having an avenue to surplus funds or avail funds?

a) Repos
b) Reverse repos c)
Money market Mutual Funds

d) None of these e)
All of these

18.Which among the
following sentence is true?

a) RBI introduced Repos & Reverse Repos in
1992

b) RBI introduced Repos in 1992 & Reverse
Repos in 1996

c) RBI Introduced Repos & Reverse Repos in
1996

d) None of these e)
All of these

19. As we know that RBI has two departments Issue
Department and Banking Department. Which among them is responsible for
maintaining a Minimum reserve system against printing of currency notes?

a) Issue Department b)
Banking Department c) Both of them

d) None of these e)
All of these

20. What is the main function of banking
department of Reserve Bank of India?

a) To do banking business with customers

b) To provide liquidity to the economy and
absorb liquidity

c) To issue the currency in circulation and its
withdrawal from circulation

d) None of these e)
All of these

21. Which among the following is correct regarding
“Progressive tax”?

a) surcharge levied on taxes for development
works

b) rate of tax increased for increased value or
volume

c) getting burden of tax passed on to general
customers

d) None of these e)
All of these

22. Which among the following coined the term
“Second generation Reforms”?

a) World Bank b)
International Monetary Fund c) Reserve Bank of India

d) None of these e)
All of these

23.Which among the
following is world’s largest foreign exchange market?

a) New York
b) London c)
Tokyo d) None of these e)
All of these

24. What is REPO rate:

a) It is a rate at which RBI sells Govt.
securities to banks

b) It is a rate at which bank borrows from RBI

c) It is a rate at which RBI allows small loans
in the market

d) None of these e)
All of these

25.Which of the
following cannot be called as a debt instrument as referred in financial
transactions.

a) Certificate of deposits b)
Bonds c) Stocks d)
Commercial papers

e) None of these

26.Whenever RBI
does some open market operation transaction, actually it wishes to regulate
which of the following

a) Inflation Only b)
Liquidity in economy

c) Borrowing powers of the bank

d) Flow of foreign direct investment e)
None of these

27. What is call money?

a) Money borrowed or lent for a day or over
night

b) Money borrowed for more than one day but
upto 3 days

c) Money borrowed for more than one day but
upto 14 days

d) None of these e)
All of these

28. Which of the following is not considered as a
money market instrument

a) Treasury bills b)
Repurchase agreements c) Commercial paper

d) Shares and Bonds e)
None of these

29. While discussing investments, there is a
mention of short term Government security. What is this investment?

a) Debenture b)
Mutual Fund c) Treasury bill d)
Share

e) None of these

30.Which of the
following tool is used by RBI to control credit and monetary situations of the
markets?

a) RTGS
b) NEFT c)
ECS d) CRR
e) None of these

31.Reverse Repo
rate has the following characteristic.

a) Borrowing by RBI from banks

b) Borrowing with Government security as
collateral

c) Short term borrowing d)
All of these e) None of these

32. The following is the mechanism of injecting
liquidity by RBI to the financial system.